Blockchain and internet of things synergy: transforming smart grids for the future

Abstract

Conventional smart grid systems face challenges in security, transparency, and efficiency. This study addresses these limitations by integrating blockchain and internet of things (IoT) technologies, presenting proof-of-concept implemented on an Orange Pi 4 single-board computer. The realized prototype demonstrated secure and transparent energy transaction management with consistent throughput between 7.45 and 7.81 transactions per second, and efficient resource utilization across varying transaction volumes. However, scalability challenges, including a linear increase in processing time with larger block sizes, emphasize the need for optimized consensus mechanisms. The findings underscore the feasibility of blockchain-based smart grids in resource-constrained settings, paving the way for advancements in peer-to-peer energy trading, decentralized energy storage, and integration with artificial intelligence for dynamic energy optimization. This work contributes to developing secure, efficient, and sustainable energy systems.